Annual report MLN 1059 Moline for period ending 15 August 2009

Abstract

MLN 1059 is a strategic project within Crocodile Gold Australia's portfolio which is located about 240 km SE of Darwin. It covers Moline Gold Field (e.g Hercules, School, Moline and Tumbling Dice) which is located about 220 km SE of Darwin. GBS subsidiary Terra Gold Mining Ltd has an option agreement with Michael Teelow (title holder) to explore and mine gold within the tenement. The tenement encompasses a suite of meta-sedimentary rocks which belong to the Burrell Creek and Mt Bonnie Formations. Locally these rocks are isoclinally folded with fold axes plunging at shallow angles to the south east. Mineralisation is found in zones of pyrite, quartz, and brecciated country rock with minor veinlets of sphalerite, tetrahedrite, arsenopyrite, chalcopyrite and carbonates. During the reporting period, GBS Gold Australia was declared under voluntary receivership on 15 September 2008, and all exploration and mining projects were placed under ?Care and Maintenance'. In 2008-09, project was reviewed and a valuation of the tenement was undertaken. MLN 1059 ranked highly due to significant potential it has for gold mineralisation. In April 2009, Crocodile Gold Australia announced to acquire all assets held by GBS Gold Australia (liquidated). After regulatory and statutory approval, now all assets including MLN 1059 have been transferred to Crocodile Gold Australia. Other activities during the reporting period are reconnaissance visit, technical review of the tenement, planning for up-coming field season and report writing and tenement management activities. After securing the tenement, Crocodile Gold has commenced 'due diligence' on the project area. The Moline project will remain under review and on availability of financial resources, a campaign of in-fill soil sampling will be carried out, and if new targets are identified that will lead to RC drilling.